NEWS

Plastic packaging tax HMRC guidance

HMRC have published guidance on the plastic packaging tax (PPT) which comes into force from 1 April 2022.

PPT will apply to plastic packaging that is manufactured in the UK or imported into the UK and which does not contain at least 30% recycled plastic by weight.

It does not apply to businesses that manufacture or import less than 10 tonnes of packaging annually.

The tax will be charged at the rate of £200 per metric tonne of plastic packaging.

The guidance provides information on which packaging is subject to the tax and explains when packaging is considered to be plastic and what constitutes recycled plastic.

It also explains that two types of plastic packaging are subject to the tax - packaging that is designed to be suitable for use in the supply chain, and single-use consumer packaging – and how to check whether each comes within the scope of the tax.

The new tax was announced earlier this year in the Spring Budget. Its aim is to ‘provide a clear economic incentive for businesses to use recycled plastic in the manufacture of plastic packaging’.

HMRC’s guidance can be found here.

 

30/11/2021